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this post was submitted on 16 Dec 2024
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Yeah, I'm gonna go and suggest the GST vacation is probably a "costly political gimmick". Honestly, I'm with her on not signing off on that.
The GST vacation offloaded all the work to the local businesses, many who weren't ready to apply the exemption in time. Kind of a dick move to them.
It would have made more sense to give that back in the form of a tax rebate during income season, or through bonus child benefit / pension payments, etc who are usually those that needs it the most if they wanted to put it back in people's pocket faster.
The thing that bothers me most about it is that it's making the tax less progressive.
The people who will benefit the most are people who spend the most on: toys, games, eating out, etc.
I get that the whole point is to allow some luxuries for Christmas, but this is going to do jack shit for people who are really struggling.
Yeah, if someone can't afford a toy at $56, they're not going to be able to afford it at $53.50 even one of the most expensive exempt items I can think of, a PS5 Pro ($1075.20 after tax, not including electronic eco waste fees or whatever), only goes down by $48. Not nothing, but hardly a meaningful impact. Someone on fulltime minimum wage who spent 100% of there income on newly tax exempt stuff would save about $200 over the 2 months, but that's not even including the necessities that don't get any cheaper like rent and other bills.
Yeah it's gotta be that and the $250 cheques.